UK Invoice Finance Market
The invoice finance market is made up of the invoice factoring and invoice discounting providers in the UK. These providers range from large bank owned invoice finance companies down to small independent family owned providers. As well as differing in size these lenders differ dramatically in terms of what they offer. These differences relate to products offered, pricing, method of delivery and also quality of service.
The larger invoice finance providers tend to have more stringent guidelines and credit policies which allow them to manage large number of clients effectively. This can mean a cost effective solution can be provided because of economy of scales. However, the service may be viewed as rigid and not particularly flexible or accommodating if your business requires something outside what they consider to be the norm.
In order for the smaller independent providers to be competitive and win clients in the market place they need to compete on service and flexibility. This means that they will often work harder to provide a more bespoke solution for your business. Due to the fact that it is not a ’one size fits all’ proposition their client managers tend to handle fewer clients and as a result service levels are often perceived as being better.
From the perspective of a business owner looking for an invoice factoring or invoice discounting company it is important to consider what you want from the service. Invoice finance companies are very good at convincing you that what you want is what they can offer rather than what they can offer is what you want.
Smart Factoring Quotes aims to help you understand what your options are and help you negotiate the best deal for your business. If at any stage you wish to speak to one of our team please call us on 0845 863 0738 or email us.
